TURKEY AND RUSSIA’S INTENTION TO BUY AZERI GAS

Messenger.ge
Friday, July 3, 2009

Turkey seems to be concerned by Russia’s proposal to buy all Azeri
natural gas and pay the record price of USD 350 per 1000 cubic metres
for it. This is a much higher sum than Moscow pays Turkmenistan and
Uzbekistan, who receive USD 300. Presumably Russia is ready to pay
this price to frustrate the NABUCCO project, which is designed to
provide Europe with natural gas by bypassing Russia, and for which
Azerbaijan will seemingly be the major provider.

Turkey buys Azeri gas for USD 120. For nearly a year negotiations on
new tariffs have been underway between Turkey and Azerbaijan. These
negotiations are being held against the background of the possible
opening of the Armenian-Turkish border and the Karabakh conflict issue,
to which is now added this ‘strange’ offer from Russia’s Gazprom
which has challenged the Turkish side by quoting such a high price.

A pilot agreement on gas supply between Russia and Azerbaijan was
signed during Medvedev’s visit to Baku on June 29, something which
caused the utmost concern in Turkey. On July 1 the Turkish Minister
of Foreign Affairs visited Moscow, presumably to clarify the situation.

Azeri Energy Minister Natik Aliev has stated that the Russian-Azeri
memorandum does not concern the Shah Deniz 2 gas field. Therefore
for the time being there is not much threat to Turkish interests in
Azerbaijan, at least so far.